As Canadian tax payers it is common to pay close attention to what is taking place on the Federal tax level. It is just taken that for granted that whatever is going to take place at this level will affect the Provincial tax but on a lesser scale. As a result of this we don’t give a whole lot of attention to the Provincial tax other than paying whatever our tax returns deem as necessary. When you are using a Toronto tax accountant you can be sure that he is going to pay as much attention to the Ontario tax rules as they are the governing body for the Province of Ontario tax payers.
Something else that often goes unnoticed is that each province has its own set of rules. Many times people who move to another province forget about this, and when it comes time to their tax preparation they can see some real differences.
Just as the tax rates could differ amongst provinces so do the credits. Most likely there would never be a total provincial tax program that would be so lucrative that it would entice people to move to that area just because of the tax responsibilities. In most cases there is always the good with the bad when it comes to taxes.
There are a few good reasons for learning what your provincial tax is all about. It helps when it comes time for your Provincial elections concerning tax based matters. Then it also gives you a clearer understanding as to where your tax dollars are going if you have to write a check to the taxman at the end of the year. It is a little easier to take when you know that some of this money is going to directly benefit your Province.
Just as important is really understanding what Provincial tax credits are available to you. Often when you combine your Federal and Provincial tax credits you can get some really good tax savings. This is an incentive for using a Toronto tax accountant that really is familiar with the Provincial tax. You could have a friend for example who is really good at doing taxes, but doesn’t understand the entire tax law and you can end up missing out on some tax breaks that would have made a difference.
It really comes down to making yourself aware of the basics of Income tax matters that affect you. Then with this knowledge and the use of a good tax accountant you will find that you are not so reluctant to complete your taxes come tax time.
We would be happy to help you with your tax matters, just give us a call here at 416-398-1700.
